Lifetime Brands, Inc. (NASDAQ:LCUT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
On February 14, 2017, Lifetime Brands, Inc. (the “Company”) entered into a triple net lease agreement (the “Lease”) with Baseline Opportunity, LLC (the “Landlord”) for 702,668 square feet of warehouse and distribution space in Rialto, California (the “Facility”). The term of the Lease is 128 months with three renewal options of five years each. Annual base rent will be approximately $3.5 million annually, at the commencement of the Lease, and will increase on an annual basis by 3%. The Company shall receive an abatement of eight months of base rent.
Landlord will construct the Facility to the Company’s specifications as set forth in the Lease, at Landlord’s sole cost and expense up to a maximum expense as set forth in the lease (“Tenant Improvement Allowance”). If due to changes in the specifications requested by the Company the cost for the design and construction of the Facility exceeds the Tenant Improvement Allowance, the Company has the option to either (i) pay for the increased cost, or (ii) finance the increased cost through a capitalized tenant improvement allowance and an amortized tenant improvement allowance, both of which shall be paid through an increase in the rent.
The Lease will commence the later of (i) the substantial completion of the Facility and other on site and off-site improvements to be undertaken by Landlord to the Lease, or (ii) November 1, 2017. If Landlord has not substantially completed the improvements by December 1, 2017, the Company shall receive additional rent abatements until substantial completion is achieved.
The Company expects to begin moving its operations into the Facility in November 2017. The Facility will serve as the Company’s West Coast distribution facility of its U.S. Wholesale Segment, which will replace the Company’s existing Fontana, California facility, the lease for which expires in March 2018.
About Lifetime Brands, Inc. (NASDAQ:LCUT)
Lifetime Brands, Inc. designs, sources and sells branded kitchenware, tableware and other products used in the home. The Company has three business segments: U.S. Wholesale, which designs, markets and distributes its products to retailers and distributors; International, which operates certain business operations that are conducted outside the United States, and Retail Direct, which markets and sells a limited selection of its products through its Pfaltzgraff, Mikasa, Built NY, Fred & Friends and Lifetime Sterling Internet Websites. Its product categories include over two categories of products that people use to prepare, serve and consume foods, including Kitchenware, which consists of kitchen tools and gadgets, cutlery and bakeware, and Tableware, which consists of dinnerware, stemware, flatware and giftware. Its Home Solutions consists of other products used in the home. It owns or licenses various brands, such as Farberware, Sabatier, masterclass, Kamenstein and Towle. Lifetime Brands, Inc. (NASDAQ:LCUT) Recent Trading Information
Lifetime Brands, Inc. (NASDAQ:LCUT) closed its last trading session up +0.10 at 14.80 with 22,535 shares trading hands.